ATP- Trading the Cup with Handle Pattern- UGAZ Sample

This sample below shows what a standard “cup with handle” pattern looks like. The stock or ETF forms a wide and deep base pattern, then begins to rise up to form the right side of the cup. Some cup and handles are narrower, sometimes called “saucer and handle” patterns, and others are deep. Often, technicians will look to buy the pullback of the right side of the cup, called the “Handle” and then benefit from the reversal to the upside.

See this standard sample below from Investopedia:

f we apply this to the Natural Gas ETF, UGAZ— we can see a potential right side handle pullback forming now. You can also note the stochastics indicator in the bottom right corner being oversold and possibly turning up soon, giving a buy signal shortly. We anticipate a possible drop to the $30-$31 range on this ETF from 32.80′s and that would be an intelligent entry for risk adjusted swing trade returns.

Subscribers to our ATP trading site will be alerted if this falls into a preferred buy range, but this is a good sample of a solid Cup with Handle pattern

If you join ATPtoday, we will offer you a $150 quarterly discount to try us, plus throw in our revolutionary

Market Trend Forecastservice for free. This service gives you accurate pivot projections for the SP 500 and Gold and Silver and helps let you know when to be aggressive and or conservative with your investing/trading. ATP service offers real time alerts for swing trades with risk management, stop loss advice, and ongoing updates and guidance.

Disclaimer:

This material should not be considered investment advice. Technical Traders Ltd. is not a registered investment advisor. Under no circumstances should any content from this website, articles, videos, seminars or emails from TheTechnicalTraders.com or its affiliates be used or interpreted as a recommendation to buy or sell any type of security or commodity contract. This material is not a solicitation for a trading approach to financial markets. Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor. This information is for educational purposes only.